no solution works as its a bug and needs to be patched.
I have tried playing off the memory stick. Problem got worse. More textures disappeared.
I have the older style xbox. It's black has the 120 gig HD I think with HDMI port on the back. It's not new, but not old either. I didn't clear my cache, just holding the A button on start up. (dont' think it does anything but out of habbit)
Just curious, is your memory stick dedicated to the 360 or split between the 360 and PC? Just trying to throw out some ideas there.
Playing off the HDD bad textures.
Playing off the memory stick bad textures.
How about playing straight off the disk? For me it was better playing straight off the disk better than installed to HDD but playing off memory stick better than playing off straight off disk.
I just checked my sons 360, his is older, white no HDMI 60 gig HDD, and old TV. Textures look ok, but the lettering is so small. Guess since it's a non HDTV that would be like that.
So the problem is either, different 360s have different effects, or Microsofts new technology is not working properly on everyones 360, or some of their disks are deffective when people are having no success at all.